The reading marked a sharp acceleration from the 0.3% year-on-year growth observed in December, and the ninth consecutive expansion in industrial output.

January’s upturn in industrial output was driven by sharper expansions in the production of non-metallic mineral products and chemical products and substances. Softer contractions in the food and automotive industries also contributed to the strong reading in the month.

The increase in January suggests that Argentina’s industrial sector is entrenched on a solid recovery path. It is set to expand at a solid pace in 2018.

Panelists participating in the LatinFocus Consensus Forecast expect industrial production to expand 1.9% in 2018, which is up 0.2 percentage points from last month’s forecast. For 2019, the panel expects industrial output to rise 2.4%. ■